International Journal of Finance & Managerial Accounting

International Journal of Finance & Managerial Accounting

Ranking of Influential Factors on Financial Distress Criteria Using Structural Equation Modeling

Document Type : Original Article

Authors
Ebrahim yousefinezhad 1
Naghi Fazeli 2
Arezoo Khosravani 2
Arefeh Mohaghegh 2
1 Ph.D Student, Department of Accounting, Semnan Branch, Islamic Azad University, Semnan, Iran
2 Department of Accounting, Semnan Branch, Islamic Azad University, Semnan, Iran
10.22034/ijfma.2025.77970.2182
Abstract
The aim of this research is to explain the model of financial distress in companies listed on the Tehran Stock Exchange. In line with the research objective, data was collected from the financial statements of companies listed on the Tehran Stock Exchange during the period 1390 to 1401 (2011–2022). A structural equation modeling approach was used for statistical analysis. For financial distress risk, the adjusted Altman, Fulmer, Springate, and Zmijewski criteria were employed. The results of the study indicate that the rate of return on assets, financial leverage, and accounting conservatism are the top three factors influencing financial distress criteria.
The aim of this research is to explain the model of financial distress in companies listed on the Tehran Stock Exchange. In line with the research objective, data was collected from the financial statements of companies listed on the Tehran Stock Exchange during the period 1390 to 1401 (2011–2022). A structural equation modeling approach was used for statistical analysis. For financial distress risk, the adjusted Altman, Fulmer, Springate, and Zmijewski criteria were employed. The results of the study indicate that the rate of return on assets, financial leverage, and accounting conservatism are the top three factors influencing financial distress criteria.
Keywords
financial distress risk
adjusted Altman
accounting conservatism
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